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Big changes backed for state enterprises
Warin Trino
The Nation

BANGKOK: -- The State Enterprise Policy Commission or 'Superboard' gave a green light yesterday to a reform plan for state enterprises through a centralised structure in a bid to tighten operational efficiency and good governance.

Kulit Sombatsiri, director general of the State Enterprise Policy Office (Sepo), said after a meeting chaired by Prime Minister Gen Prayut Chan-o-cha that the board approved an outline for reform of state enterprises, accepting the single ownership concept via a "holding unit".

The 'Superboard' was set up in June last year by National Council for Peace and Order after the coup to look into the performance of 56 state enterprises and find solutions for those ridden with debt and poor performance, as well as working out future policies for them. One of its tasks is to find ways to free state bodies from political intervention.

However, Kulit said, the 'Superboard' has ordered a subcommittee looking to develop good governance at state enterprises chaired by Bank of Thailand chief Prasarn Trairatvorakul to further study the "holding unit" to see if it should be an independent or a state-owned agency.

The subcommittee was also assigned to determine the job description between the holding unit and ministry overseeing the state enterprise.

Kulit said the body that oversees state enterprises would look like a holding unit. It would be given shares for all state enterprises from the Finance Ministry.

"Initially, Sepo may be used as a holding unit. However, it has been yet to be finalised what the holding unit will look like. The subcommittee was scheduled to propose its study to the 'Superboard' for consideration at its meeting next month," Kulit said.

For the next phase of state enterprise regulation, Kulit said, the body would be divided into three parts. First, the ministry commanding the state enterprises would be responsible for outlining policies. Second, the 'holding unit' would oversee the appointment of board members of state enterprises, project investments, and performance assessments.

Lastly, there would be a regulatory body, governing the state enterprises compliance with rules and regulations. Also yesterday, the 'Superboard' approved in principle the rehabilitation plan of Thai Airways International Plc (THAI), the State Railways of Thailand (SRT), and Bangkok Mass Transit Authority (BMTA).

In regard to SRT's rehabilitation plan, the 'Superboard' instructed the Transport and Finance ministries to find a solution to manage the SRT's debts. In the plan, the State Railways agency will offer plots of land in Makkasan and and areas by the river in Bangkok to the Finance Ministry in exchange for it paying debts worth Bt80 billion.

For the BMTA, the 'Superboard' agreed with the plan for it to solely be a bus operator, while the Land Transport Department would be a regulator.

The country's transport infrastructure development plan for 2015-21 along with an immediate plan for this year were also approved.

Moreover, the Transport Ministry was assigned to further study ways of funding transport projects.

The 'Superboard' also approved an expansion of electricity coverage to 11,000 remote households proposed by the Provincial Electricity Authority, with investment budget of Bt1.21 billion.

The 'Superboard' gave a nod for a 6.5 per cent pay increase for employees of 35 state enterprises to Bt9,040 a month.

Kulit said the salary increase was in line with the daily minimum wage, which was now stood at Bt300.

"Most employees, who are registered, are paid a minimum rate of only Bt5,780 per month," said he, adding that the ceiling for maximum pay was lifted to Bt142,840 from Bt113,000.

Source: http://www.nationmultimedia.com/business/Big-changes-backed-for-state-enterprises-30252709.html


-- The Nation 2015-01-27

[gamini]

very positive idea. Instead of state companies managed by inept political cronies